Be sure to read the fine print and don't count your chickens before their hatched! I bid on a home at auction.com and won. The reserve had been met. I signed all the papers right away and expected the seller to do the same. I did everything I was supposed to do and was told it should close in 30 days. The auction company told me to start the loan process as soon as I won the bid.
The fine print included the following clause:
7. Auction/sale process. Neither Seller, Seller’s Broker nor auctioneer is making any representation or
Warranty as to the manner in which the sale process will be managed. Seller may select the winning bid in its
Sole and absolute discretion. No obligation to sell shall be binding on Seller unless and until a written
Contract of sale or purchase agreement is signed and delivered by Seller. Seller may rescind any oral
Acceptance of a winning bid prior to the execution and delivery of this Purchase Agreement for any reason,
Including, but not limited to the receipt of a subsequent higher bid or offer to purchase whether such higher
Bid or offer to purchase was received pursuant to the Auction Terms and Conditions or otherwise.
I was told by the escrow company this is a formality and there shouldn't be any problem. Almost 3 weeks into escrow they rejected my bid. They would not even give me a counter-offer. They said I could make a higher offer and they might consider it. I did, and they didn't. I was told I could increase my bid even higher and they might consider it but it would be a week before they would get back to me.
The house is no longer available so I can only assume they got a higher offer 2 weeks after they sold it to me. Of course, if I changed my mind at any time after the auction, I would have lost my earnest money of over $4,000. They lose nothing. I cashed out my 401k to get the down payment and the loan docs have all been completed. I'm not even sure how much money I'm going to owe the mortgage company for all they've already done.
I still think online auctions can be a great. I've gotten a vehicle and a trailer on E-bay with no problems. I think auction.com needs to rethink their policies.
Buyer beware!!!
0 comments